Loans and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2020

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Type of Loan Portfolio Summarized by the Aggregate Risk Rating

The types of loans in Mid Penn’s portfolio, summarized by those rated as “pass” (net of deferred fees and costs of $1,019,000 as of March 31, 2020 and $1,081,000 as of December 31, 2019), and the loans classified as “special mention” and “substandard” within Mid Penn’s internal risk rating system as of March 31, 2020 and December 31, 2019, are as follows:

(Dollars in thousands)			Special
March 31, 2020	Pass		Mention		Substandard		Total
Commercial and industrial	$	338,713	$	9,951	$	2,675	$	351,339
Commercial real estate		925,303		1,673		13,019		939,995
Commercial real estate - construction		205,209		—		39		205,248
Residential mortgage		228,657		55		1,335		230,047
Home equity		64,568		10		32		64,610
Consumer		6,910		—		—		6,910
	$	1,769,360	$	11,689	$	17,100	$	1,798,149

(Dollars in thousands)			Special
December 31, 2019	Pass		Mention		Substandard		Total
Commercial and industrial	$	326,573	$	9,558	$	3,016	$	339,147
Commercial real estate		913,001		2,426		13,711		929,138
Commercial real estate - construction		181,650		—		40		181,690
Residential mortgage		235,252		55		1,417		236,724
Home equity		68,224		—		47		68,271
Consumer		7,786		—		—		7,786
	$	1,732,486	$	12,039	$	18,231	$	1,762,756

Impaired Loans by Loan Portfolio Class

Impaired loans by loan portfolio class as of March 31, 2020 and December 31, 2019 are summarized as follows:

	March 31, 2020						December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial and industrial	$	890	$	890	$	—	$	890	$	890	$	—
Commercial real estate		6,833		7,151		—		7,973		8,366		—
Commercial real estate - construction		39		39		—		40		61		—
Residential mortgage		748		766		—		817		838		—
Home equity		24		25		—		25		27		—
Consumer		—		—		—		—		—		—
With no related allowance recorded and acquired with credit deterioration:
Commercial and industrial	$	—	$	—	$	—	$	3	$	68	$	—
Commercial real estate		1,423		1,423		—		1,423		1,708		—
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		368		368		—		381		578		—
Home equity		1		1		—		1		5		—
Consumer		—		—		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	7	$	7	$	3	$	—	$	—	$	—
Commercial real estate		816		816		190		338		380		166
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total Impaired Loans:
Commercial and industrial	$	897	$	897	$	3	$	893	$	958	$	—
Commercial real estate		9,072		9,390		190		9,734		10,454		166
Commercial real estate - construction		39		39		—		40		61		—
Residential mortgage		1,116		1,134		—		1,198		1,416		—
Home equity		25		26		—		26		32		—
Consumer		—		—		—		—		—		—

Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class

The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2020 and 2019 are summarized as follows:

	Three Months Ended
	March 31, 2020				March 31, 2019
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial and industrial	$	890	$	—	$	—	$	—
Commercial real estate		7,430		—		2,001		—
Commercial real estate - construction		40		—		—		—
Residential mortgage		782		6		858		7
Home equity		24		—		30		—
Consumer		—		—		—		—
With no related allowance recorded and acquired with credit deterioration:
Commercial and industrial	$	2	$	—	$	29	$	—
Commercial real estate		1,420		—		1,575		—
Commercial real estate - construction		—		—		—		—
Residential mortgage		374		—		1,214		—
Home equity		1		—		4		—
Consumer		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	4	$	—	$	2,366	$	3
Commercial real estate		550		—		776		—
Commercial real estate - construction		—		—		367		—
Residential mortgage		—		—		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total Impaired Loans:
Commercial and industrial	$	896	$	—	$	2,395	$	3
Commercial real estate		9,400		—		4,352		—
Commercial real estate - construction		40		—		367		—
Residential mortgage		1,156		6		2,072		7
Home equity		25		—		34		—
Consumer		—		—		—		—

Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration

Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2020 and December 31, 2019 are summarized as follows:

(Dollars in thousands)	March 31, 2020		December 31, 2019
Commercial and industrial	$	898	$	894
Commercial real estate		9,072		9,800
Commercial real estate - construction		39		40
Residential mortgage		637		711
Home equity		24		26
	$	10,670	$	11,471

Loan Portfolio Summarized by the Past Due Status

The classes of the loan portfolio summarized by the past due status as of March 31, 2020 and December 31, 2019 are summarized as follows:

													Loans
(Dollars in thousands)	30-59		60-89		Greater								Receivable >
	Days Past		Days Past		than 90		Total Past						90 Days and
March 31, 2020	Due		Due		Days		Due		Current		Total Loans		Accruing
Commercial and industrial	$	800	$	251	$	898	$	1,949	$	349,390	$	351,339	$	—
Commercial real estate		2,025		525		7,119		9,669		928,903		938,572		—
Commercial real estate - construction		—		—		—		—		205,248		205,248		—
Residential mortgage		646		61		174		881		228,798		229,679		—
Home equity		335		—		23		358		64,251		64,609		—
Consumer		29		3		—		32		6,878		6,910		—
Loans acquired with credit deterioration:
Commercial and industrial		—		—		—		—		—		—		—
Commercial real estate		—		—		1,409		1,409		14		1,423		—
Commercial real estate - construction		—		—		—		—		—		—		—
Residential mortgage		—		—		195		195		173		368		—
Home equity		—		—		—		—		1		1		—
Consumer		—		—		—		—		—		—		—
Total	$	3,835	$	840	$	9,818	$	14,493	$	1,783,656	$	1,798,149	$	—

													Loans
(Dollars in thousands)	30-59		60-89		Greater								Receivable >
	Days Past		Days Past		than 90		Total Past						90 Days and
December 31, 2019	Due		Due		Days		Due		Current		Total Loans		Accruing
Commercial and industrial	$	—	$	1,059	$	890	$	1,949	$	337,195	$	339,144	$	—
Commercial real estate		1,298		11		7,819		9,128		918,587		927,715		—
Commercial real estate - construction		—		—		—		—		181,690		181,690		—
Residential mortgage		145		—		326		471		235,872		236,343		—
Home equity		34		—		—		34		68,236		68,270		—
Consumer		5		3		—		8		7,778		7,786		—
Loans acquired with credit deterioration:
Commercial and industrial		—		—		3		3		—		3		—
Commercial real estate		16		473		934		1,423		—		1,423		—
Commercial real estate - construction		—		—		—		—		—		—		—
Residential mortgage		5		—		203		208		173		381		—
Home equity		—		—		—		—		1		1		—
Consumer		—		—		—		—		—		—		—
Total	$	1,503	$	1,546	$	10,175	$	13,224	$	1,749,532	$	1,762,756	$	—

Allowance and Recorded Investment in Financing Receivables

The following tables summarize the allowance and recorded investments in loans receivable.

(Dollars in thousands)
As of, and for the three months ended, March 31, 2020	Commercial and industrial			Commercial real estate		Commercial real estate - construction		Residential mortgage		Home equity		Consumer			Unallocated		Total
Allowance for loan and lease losses:
Beginning balance,
January 1, 2020	$	2,341		$	6,259	$	51	$	417	$	442	$	2		$	3	$	9,515
Charge-offs		(43	)		—		—		—		—		(15	)		—		(58	)
Recoveries		1			1		—		3		—		2			—		7
Provisions		128			370		6		16		6		13			11		550
Ending balance,
March 31, 2020		2,427			6,630		57		436		448		2			14		10,014
Individually evaluated for impairment		3			190		—		—		—		—			—		193
Ending balance:
collectively evaluated for impairment	$	2,424		$	6,440	$	57	$	436	$	448	$	2		$	14	$	9,821
Loans receivables:
Ending balance	$	351,339		$	939,995	$	205,248	$	230,047	$	64,610	$	6,910		$	—	$	1,798,149
Ending balance: individually evaluated for impairment		897			7,649		39		748		24		—			—		9,357
Ending balance: acquired with credit deterioration		—			1,423		—		368		1		—			—		1,792
Ending balance: collectively evaluated for impairment	$	350,442		$	930,923	$	205,209	$	228,931	$	64,585	$	6,910		$	—	$	1,787,000

(Dollars in thousands)
December 31, 2019	Commercial and industrial		Commercial real estate		Commercial real estate - construction		Residential mortgage		Home equity		Consumer		Unallocated		Total
Allowance for loan and lease losses:
Ending balance	$	2,341	$	6,259	$	51	$	417	$	442	$	2	$	3	$	9,515
Ending balance: individually evaluated for impairment		—		166		—		—		—		—		—		166
Ending balance: collectively evaluated for impairment	$	2,341	$	6,093	$	51	$	417	$	442	$	2	$	3	$	9,349
Loans receivable:
Ending balance	$	339,147	$	929,138	$	181,690	$	236,724	$	68,271	$	7,786	$	—	$	1,762,756
Ending balance: individually evaluated for impairment		890		8,311		40		817		25		—		—		10,083
Ending balance: acquired with credit deterioration		3		1,423		—		381		1		—		—		1,808
Ending balance: collectively evaluated for impairment	$	338,254	$	919,404	$	181,650	$	235,526	$	68,245	$	7,786	$	—	$	1,750,865

(Dollars in thousands)
As of, and for the three months ended, March 31, 2019	Commercial and industrial		Commercial real estate			Commercial real estate - construction			Residential mortgage		Home equity			Consumer			Unallocated			Total
Allowance for loan and lease losses:
Beginning balance,
January 1, 2019	$	2,391	$	4,703		$	75		$	453	$	528		$	7		$	240		$	8,397
Charge-offs		—		(11	)		(20	)		—		—			(10	)		—			(41	)
Recoveries		1		18			—			—		—			2			—			21
Provisions		51		321			26			24		(78	)		7			(226	)		125
Ending balance,
March 31, 2019		2,443		5,031			81			477		450			6			14			8,502
Individually evaluated for impairment		205		243			38			—		—			—			—			486
Ending balance:
collectively evaluated for impairment	$	2,238	$	4,788		$	43		$	477	$	450		$	6		$	14		$	8,016
Loans receivables:
Ending balance	$	285,766	$	868,498		$	162,013		$	252,455	$	68,436		$	9,518		$	—		$	1,646,686
Ending balance: individually evaluated for impairment		205		2,827			367			905		29			—			—			4,333
Ending balance: acquired with credit deterioration		29		1,588			—			1,211		4			—			—			2,832
Ending balance: collectively evaluated for impairment	$	285,532	$	864,083		$	161,646		$	250,339	$	68,403		$	9,518		$	—		$	1,639,521

Troubled Debt Restructurings

The recorded investments in troubled debt restructured loans at March 31, 2020 and December 31, 2019 are as follows:

(Dollars in thousands)	Pre-Modification		Post-Modification
March 31, 2020	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	8	$	8	$	7
Commercial real estate	$	1,214	$	1,115	$	440
Commercial real estate - construction		40		40		39
Residential mortgage		689		687		495
	$	1,951	$	1,850	$	981

(Dollars in thousands)	Pre-Modification		Post-Modification
December 31, 2019	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	3	$	3	$	3
Commercial real estate		2,562		2,463		1,705
Commercial real estate - construction		40		40		40
Residential mortgage		677		675		490
	$	3,282	$	3,181	$	2,238

Schedule of Accretion of Purchased Impaired Loan

The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix Bancorp, Inc. (March 2015), Scottdale (January 2018), and First Priority (July 2018) acquisitions for the three months ended March 31, 2020 and 2019.

(Dollars in thousands)
	Three Months Ended March 31,
	2020			2019
Accretable yield, beginning of period	$	89		$	309
Accretable yield amortized to interest income		(17	)		(55	)
Accretable yield, end of period	$	72		$	254